Key Facts

• The Committee meets at specified times in December to consider the Bill.
• Witnesses include Kate Nicholls OBE, chief executive of UK Hospitality, and Dominic Curran, property policy adviser at the British Retail Consortium.
• Extensive engagement with Ministers began in March last year regarding rent and rent debt issues.
• About half to two thirds of landlords and tenants have reached agreements on rent debt.
• About a third of hospitality businesses had not negotiated settlements before legislation was announced.
• The announcement pushed negotiations towards resolution, achieving agreement for around 60% of members.
• Guidance to arbitrators is awaited for clarity on affordability tests and viability assessments.
• Retail sector has several billion pounds of outstanding rent arrears during the pandemic period.
• Voluntary code of practice did not significantly aid members due to its voluntary nature, lacking sanctions for non-compliance.
• The introduction of legislative measures has reduced businesses with no negotiations from a third to 20%.
• The arrears situation is historical, going up to April 12 or end of March based on rent payment dates.
• Arbitrators need broad-based financial and business understanding as well as sector-specific expertise.
• Confidentiality is crucial during the arbitration process due to sharing sensitive financial information.
• Further restrictions would significantly impair businesses' ability to pay rent, affecting viability and affordability.
• The Government announced in October that landlords could not pursue court processes for rent arrears after November 10, when the Bill was introduced.
• Landlords who started legal proceedings before November 10 have an advantage over those who negotiated reasonably with tenants.
• A CCJ seeks to establish that a debt is due in full and can impact a business's credit rating.
• Stewart Hosie is chairing a Committee session on the Commercial Rent (Coronavirus) Bill.
• Melanie Leech CBE is chief executive of the British Property Federation representing all parts of the property sector in the UK.
• Astrid Cruickshank runs Lightstone Properties, which invests mainly in car dealerships, retail and leisure.
• Around 86% to 87% of commercial leases surveyed have some form of agreement.
• There are about 620,000 commercial leases in the UK based on business rates data.
• The survey represents around 16,000 leases across the whole of the UK.
• Stewart Hosie mentions a sound issue during the session.
• Some landlords have restructured leases and provided rent-free periods to affected tenants.
• Millions of pounds have been given in rent write-offs by larger landlords.
• There is a principle that those who can afford to pay should do so, while support should be prioritised for those demonstrating significant impact.
• The Chartered Institute of Arbitrators has 18,000 members globally with 6,000 in the UK.
• Financial and accounting expertise is crucial for arbitrators assessing viability and affordability.
• The Secretary of State may make regulations on fee structures.
• The Bill includes clause 21 which provides guidance for approved bodies to appoint arbitrators.
• Guidance will cover the precise skillsets required for arbitrators, evidence that can be assessed as part of viability and affordability assessments, and balancing interests between tenants and landlords.
• There is a precedent model in the business arbitration service run by the Chartered Institute of Arbitrators with fixed costs per party.
• The Chartered Institute of Arbitrators will submit a written statement to the Committee later in the week.
• No further questions are raised beyond those already discussed.